More annual reports from Accor:
2023 ReportPeers and competitors of Accor:
AccorA N N U A L R E P O R T 2015 GAMCO Investors, Inc. Our teammates on the floor of the New York Stock Exchange celebrating our listing Associated Capital began trading on the NYSE on December 1, 2015 (NYSE: AC) 2 GAMCO Investors, Inc. Dear Partners/Shareholders: It is our privilege to share with you the state of Associated Capital (“AC” or the “Company”) as we enter our first full year as an independent public company, but 40th year investing on behalf of our clients. Let’s go back to the beginning. When we started the business, we set forth a mission statement and think it is appropriate to share it with you again. Mission Statement (Gabelli & Company, 1976): To earn a superior risk-adjusted return for our clients over the long-term by providing value-added products utilizing our proprietary fundamental methodology. By earning returns for our clients, we will be earning returns for all our stakeholders: (cid:122) Our Shareholders (cid:122) Our Professional Staff We appreciate the confidence and trust you have offered our organization. Today, we remain vigilant in the application of our investment philosophy and in our search for opportunities, as we have for forty years. We thank you for entrusting a portion of your assets to (y)our firm. Financial Highlights On November 30, 2015, GAMCO Investors, Inc. (“GAMCO”) distributed all the outstanding shares of each class of common stock of AC on a pro rata one-for-one basis to the holders of each class of GAMCO’s common stock. Prior to the distribution, GAMCO contributed the 93.9% interest it held in Gabelli Securities, Inc. (“GSI”) and certain cash and other assets to AC. As we had previously communicated, we believed that separating AC as an independent, publicly owned company will add increased value to both AC and GAMCO. The spin-off permits each company to: tailor its strategic plans and growth opportunities (cid:273) (cid:273) more efficiently raise and allocate resources, including capital raised through debt or equity offerings flexibly use its own stock as currency for teammate incentive compensation and potential acquisitions provide investors a more targeted investment opportunity (cid:273) (cid:273) The following transactions were also undertaken in connection with the Spin-off: AC, through its majority owned GSI subsidiary, acquired 4,393,055 shares of GAMCO Class A common stock. GAMCO issued a promissory note (the “GAMCO Note”) to AC in the original principal amount of $250.0 million used to partially capitalize the Company in connection with the Spin-off. The GAMCO Note bears interest at 4.0% per annum and has a maturity date of November 30, 2020. GAMCO will repay the original principal amount of the GAMCO Note to AC Group, in cash, in five equal annual installments of $50 million on each interest payment date up to and including the maturity date. GAMCO may prepay the GAMCO Note prior to maturity without penalty. 1 3 GAMCO Investors, Inc. Condensed Consolidated Balance Sheet (In thousands) ASSETS Investments (including cash and cash equivalents) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total assets LIABILITIES AND EQUITY Compensation payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Securities sold, not yet purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Income tax payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accrued expenses and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total liabilities and equity Decmeber 31, 2015 2014 763,101 68,863 4,784 653,308 78,954 22,432 $836,748 $754,694 10,926 9,623 5,669 53,243 79,461 9,179 10,595 16,363 67,296 103,433 Redeemable noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,738 68,334 Stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GBL 4% PIK Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total liabilities and equity 999,196 (250,000) 2,353 751,549 $836,748 582,927 - - 582,927 $754,694 At December 31, 2015, we had cash and net investments of $753 million, including $306 million of cash and short term treasuries, $219 million of net marketable securities, including the shares of GAMCO stock and $228 million invested in affiliated and third party funds and partnerships. We have a GAAP basis book value of $29.54 per share at December 31, 2015. With respect to the $250 million due to us from GAMCO, we stress that this amount is not included in our book value for GAAP purposes, as GAAP requires the note to be accounted for as a contra-equity item instead of an asset until the note is paid down with cash. As such, management believes it is useful to consider Adjusted Economic Book Value (“AEBV”), a non-GAAP measure, when reviewing our financial condition. AEBV is calculated as GAAP book value plus the value of the GAMCO Note. AEBV and AEBV per share were $1.002 billion and $39.37 per share respectively 1. Our financial resources underpin our flexibility to pursue strategic objectives that may include acquisitions, lift- outs, seeding new investment strategies, and co-investing, as well as shareholder compensation in the form of share repurchase and dividends. Our primary goal is to use our liquid resources to opportunistically and strategically grow book value. Assets Under Management (In millions) Event Merger Arb . . . . . . . . . . . . . . . . . . . . Event-Driven Value . . . . . . . . . . . . . . . . . . . Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total AUM . . . . . . . . . . . . . . . . . . . . . . . . . (a) Compound annual growth rate. (b) Includes $89.3 million of proprietary capital. 2011 $513 132 65 $710 Year Ended December 31, 2013 $691 140 76 $907 2014 $796 167 77 $1,040 2012 $721 124 75 $920 2015 $869 145 66 $1,080 (b) CAGR (a) 2015/2011 14.1% 2.4 0.4 11.1% 1 See Notes on Non-GAAP Financial Measures on page 3. 4 2 GAMCO Investors, Inc. Quarterly Financial Information Quarterly financial information for the years ended December 31, 2015 and 2014 is presented below. (In thousands, except per share data) Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net income (loss) attributable to Associated Capital Group, Inc.'s shareholders . . . . . . . . . . . . . . . . . . . . Net income (loss) attributable to Associated Capital Group, Inc.'s shareholders per share: Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net income (loss) attributable to Associated Capital Group, Inc.'s shareholders . . . . . . . . . . . . . . . . . . . . . Net income (loss) attributable to Associated Capital Group, Inc.'s shareholders per share: Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1st 2nd 2015 3rd 4th Total $4,567 (3,880) $4,590 (3,468) $4,690 (1,081) $8,995 (5,883) $22,842 (14,312) 2,385 855 (7,540) 4,189 (111) 0.09 $0.09 0.03 $0.03 (0.30) $(0.30) 0.17 $0.17 - - 1st 2nd $3,904 (3,278) $4,553 (3,645) 2014 3rd $4,895 (748) 4th Total $7,677 (2,253) $21,029 (9,924) 422 4,015 (3,783) 2,346 3,000 0.02 $0.02 0.16 $0.16 (0.15) $(0.15) 0.09 $0.09 0.12 $0.12 The Company’s financial information for the eleven months ended November 30, 2015 and year ended December 31, 2014 were derived from the combined consolidated financial statements and accounting records of GAMCO and are presented as carve-out financial statements as the Company was not a standalone public company prior to the Spin-off. For the periods prior to the spin-off of the Company from GAMCO, the quarterly financial information includes allocations from GAMCO. These allocations may not be reflective of the actual level of assets, liabilities, income or costs which would have been incurred had the Company operated as a separate legal entity apart from GAMCO. The Company’s financial information for the one month ended December 31, 2015 is presented based on our actual results as a stand-alone public company subsequent to our Spin-off. Notes of Non-GAAP Financial Measures Adjusted Economic Book Value (AEBV) is used by management for purposes of evaluating our financial condition. We believe this measure is useful in illustrating a value of the Company inclusive of the $250 million GAMCO Note. Reconciliation of Total Equity to Adjusted Economic Book Value Total equity as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Add: GAMCO Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted Economic book value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total $ 751,549 250,000 $1,001,549 Per Share $29.54 9.83 $39.37 3 5 GAMCO Investors, Inc. Board of Directors Richard L. Bready Former Chairman & Chief Executive Officer Nortek, Inc. Daniel R. Lee Chief Executive Officer and Director Full House Resorts, Inc. Marc Gabelli President Associated Capital Group, Inc. Co-Chairman, Gabelli Securities, Inc. Mario J. Gabelli Chairman and Chief Executive Officer Associated Capital Group, Inc. Bruce M. Lisman Former Chairman of JP Morgan’s Global Equity Division Salvatore F. Sodano Chairman and Chief Executive Officer Worldwide Capital Advisory Partners, LLC. Former Chairman & CEO of the American Stock Exchange Former Vice Chairman of the NASD Officers Mario J. Gabelli, CFA Executive Chairman and Chief Executive Officer Marc Gabelli President Kevin Handwerker Executive Vice President, General Counsel and Secretary Patrick Dennis Executive Vice President and Chief Financial Officer Corporate and Shareholder Information Investor Relations For our 10-K and other shareholder information, as well as information on our products and services, visit our website at www.associated-capital-group.com or write to: One Corporate Center Rye, New York 10580-1422 914-921-8381 email: investor@associated-capital-group.com Transfer Agent Computershare 250 Royall Street Canton, MA 02021 (781) 575-2000 Trading Information New York Stock Exchange Class A Common Stock Symbol - AC Website www.associated-capital-group.com Investment Services Information Alternative Investments Contact: Michael M. Gabelli Managing Director and President 914-921-5135 email: alternatives@gabelli.com Institutional Research Contact: C.V. McGinity President 914-921-7732 email: CMcGinity@gabelli.com Annual Meeting Our 2016 Annual Meeting of Shareholders will be held at 1:00 p.m. on May 3, 2016 at the Indian Harbor Yacht Club, 710 Steamboat Road Greenwich, CT 06830 6 GAMCO Investors, Inc. Our teammates ringing the bell on the New York Stock Exchange celebrating our listing 7 GAMCO Investors, Inc. One Corporate Center, Rye, New York 10580-1422 www.associated-capital-group.com 203-629-9595 | info@associated-capital-group.com 8
Continue reading text version or see original annual report in PDF format above